willis towers watson data services€¦ · willis towers watson data services 2017 company car...

Willis Towers Watson Data Services

2017 Company Car Benefits Survey Report - SAMPLE PAGES

© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

2017 Company Car Benefits Survey Report – SAMPLE COUNTRY

The topics in the Company Car Benefits Survey report:

Policies – By Employee Level Eligibility for Company Car or Car Allowance

Prevalence by Global Grade

Financing Method

Selection Criteria

Maximum Purchase Price / Leasing Cost / Rental charges

Car Make and Model

Personal Use of Company Cars

Replacement Period

Options to Purchase Company Car

Company Financed Employee Car Purchase (Latin America)

Car Purchase Bonus (Latin America)

Use of Employee Personal Cars for Business

Policy Decision Making

Policy Review / Policy Change

Part-time Policies

Taxes

Trade-up/Trade-down Arrangement

Car Accessories and Other Features (options, prohibited vehicles)

Fuel

Tires

Running Costs (maintenance, repair, car wash, road assistance)

Chauffeur

Promotions/Changes of Position

Accidents/Damages/Penalties

Insurance (Mexico)

Second Car (Latin America)

Security Items (Mexico)

Car Allowances Policies

Car/cash Alternatives

Garage/parking, Congestion Charges, Toll

Expatriate (Latin America)

Motorcycles

Green Initiatives (co2 emisson ceilings, policy changes)

Tax Treatment Highlights

Benefits Value – By Position

Prevalence by type of car benefits Eligibility Critieria Types of Car Lease Top Three Car Make, Models and Engine Size Car Purchase Cost Leasing Cost Car Allowance Car Purchase Bonus (Latin America)


2017 Company Car Benefits Survey Report – SAMPLE CountryData Output by Position

Company Car Benefits Survey | Position Detailed View

SAMPLE COUNTRYCSD000 Direct Sales Generalist/Multidiscipline

CSD000-S3-11

Valued Benefits #Orgs #Cases Avg 10th 25th Median 75th 90th

Car Benefits - Car Purchase Cost 34 457 27 191 21 630 23 620 25 590 30 495 33 296

Car Benefits - Annual Leasing Cost 37 443 5 423 3 720 4 548 5 459 6 132 6 907

Car Benefits - Annual Car Allowance 37 172 5 530 3 689 4 850 6 000 6 000 6 700

Prevalence Data

Car Benefits - Type Car Benefits - Eligibility Criteria 29.4% Company Car 56.6% Job Status39.2% Car Allowance 13.3% Nature of Job / Job Requirements8.4% Choice - Car or Car Allowance 30.1% No Response/Policy21.0% No Benefits2.1% Not Responding

Car Benefits - Types of Car Lease Car Benefits - Top 3 Make/Model32.9% Contract hire/operating lease WITH maintenance Most Frequent0.0% Contract hire/operating lease WITHOUT maintenance Second Most Frequent 0.7% Finance Lease

BMW 3 Series BMW 5 Series Audi A3 Third Most Frequent

66.4% No Response/Policy

Data displayed are for illustrative purposes only

Organizations: 125 | Incumbents: 1517


2017 Company Car Benefits Survey Report - Sample Country

Business Unit

Head and Country

Manager Executive

Middle Manager

and Senior

Professional

Supervisory and

Professional Sales Manager Sales Professional

Number of Responses 132 139 177 131 135 140

80.3% 78.4% 78.0% 53.4% 88.1% 80.7%

1.5% 1.4% 2.3% 1.5% 1.5% 1.4%

Eligible to Choose between a Company Car

and a Cash Allowance 17.4% 19.4% 15.3% 10.7% 9.6% 8.6%

0.8% 0.7% 4.5% 34.4% 0.7% 9.3%

Number of

Responses 10th Percentile 25th Percentile Median 75th Percentile 90th Percentile Average

20 0% 0% 4% 11% 20% 7%

2017 Company Car Benefits Survey Report - SAMPLE Country Policies Arrangement Type

Organization Provides Company Car Benefits (Company Car or Cash Allowance)

Number of Responses Percent Responding Yes

Percent

Not Eligble for a company car benefit

Percentage of Employees Entitled to Choose Between a Company Car and a Cash Allowance Who Have Chosen the

Cash Allowance Option

200 92.5%

Eligibility for Company-Owned or Leased Car or Car-related Cash Allowances

Employee Categories Eligible for a Company Car or a Car Allowance

Non-Sales Employee Categories Sales Employee Categories

Eligible for Company Car ONLY -

No Option to Take Cash Allowance Instead of a Car

Eligible for Cash Allowance ONLY - No Option to Take a Car



Number of Responses

Number of Responses

Business Unit

Head and Country

Manager Executive

Middle Manager

and Senior

Professional

Supervisory and



3.9% 3.0% 4.4% 5.3% 8.6% 5.0%

53.5% 56.1% 51.9% 52.0% 52.3% 55.8%

37.8% 35.6% 39.4% 36.0% 36.7% 35.8%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

4.7% 5.3% 4.4% 6.7% 2.3% 3.3%

Contract hire/operating lease WITHOUT maintenance

(i.e., finance company does not have responsibility for maintenance) 4.4%

Contract hire/operating lease WITH maintenance (i.e., finance company maintains the car) 84.6%

Finance lease (i.e., leases that transfer to the lessee substantially all the risks and rewards incidental

to ownership of the car. All other leases are contract hire/operating leases. Finance leases do not

typically include maintenance.) 9.9%

Financing Method Used When Company Cars Are Provided to Employees

Percent of Responses

Cash purchase by organization (i.e., organization-owned fleet) 13.2%

182

Employee Choice up to a Maximum Cost

Designated by the Organization

Employee Choice Without Limits

Other

Car insurance is arranged directly with an insurance company 26.8%

Type of Car

How Company-Owned or Leased Cars Are Selected by Employees


Car purchase bonus in lieu of a car (i.e., payment by organization to employee of lump sum equal to

car value or annual amount equal to car payment cost) 0.0%

How Organization Arranges Insurance for Company Cars Provided to Employees


Car insurance is covered through the lease/rental arrangement 73.2%

157

No Choice (Make and Model Designated by the Organization

Employee Choice from a Range of Makes and Models

Designated by the Organization



Number of


16 43,908 47,214 54,201 60,000 62,105 53,506

16 41,408 45,000 49,200 50,724 54,425 48,125

24 25,000 30,375 39,726 41,413 45,000 37,138

7 - 26,500 30,000 38,185 - 32,196

17 25,000 25,000 32,677 35,500 42,600 32,659

17 25,836 30,000 33,000 36,875 40,000 33,373

Number of


64 847 950 1,088 1,276 1,300 1,100

66 704 800 963 1,150 1,250 973

79 600 650 755 920 950 778

39 500 550 659 800 852 673

53 601 682 783 898 998 794

55 550 598 700 785 856 691

Sales Employee Categories

Sales Manager

Sales Professional

* i.e., finance company maintains the car

Non-Sales Employee Categories

Business Unit Head and Country Manager

Executive

Middle Manager and Senior Professional

Supervisory and Professional



Sales Manager

Sales Professional

Maximum Monthly Rental Charge (Contract Hire/Operating Lease WITH Maintenance*) Excluding Value-Added Tax

(in Local Currency)

Maximum Purchase Price/List Price (Before Discount) Including Value-Added Tax and Other Local Taxes (in Local Currency)



Executive


© 20

17 W

illis T

ower

s Wats

on. A

ll righ

ts re

serve

d. Pr

opri



Number of

Responses

Up To 60,000

Kilometers

60,001 - 90,000

Kilometers

90,001 - 120,000

Kilometers

120,001 - 150,000

Kilometers

Over 150,000

Kilometers

4 - - - - -

10 - - 885 - 1,000

12 - - 750 700 975

6 - - 690 - -

11 - - 750 700 900

10 - - - 650 690

Percent of

Responses

BMW 5 Series 26.1%

Audi A6 17.0%

BMW 3 Series 5.2%

Audi A6 19.5%

BMW 5 Series 18.5%

Audi A4 9.5%

BMW 3 Series 21.0%

Audi A4 15.7%

VW Passat 9.7%

BMW 3 Series 18.3%

VW Passat 10.1%

Audi A4 9.2%

Maximum Monthly Amount of Leasing Value (Finance Lease*) Excluding Value-Added Tax in Relation to the Car Replacement

Period in Kilometer/Miles- Median Value (in Local Currency)

Executive

1.

2.

3.




1.

2.

3.


Sales Manager

Sales Professional

*Finance leases are leases that transfer to the lessee substantially all the risks and rewards incidental to ownership of the car. Finance leases do not typically include maintenance.

All other leases are contract hire/operating leases.

Three Most Frequently Available Car Makes and Models for Each Employee Category



Executive



2.

3.

1.

2.

3.


1.



Number of Responses

Number of Responses

Employee Options to Purchase Company Car

Organization Allows Employees to Purchase Their Company Car at the End of the Replacement Period


Other 8.8%

No Formal policy 38.6%

Use of Employee Personal Cars for Organization Business

Blue Book/Official Table Price (Resale value) 1.8%

Original Invoice Price 0.0%

Average between Market and Original Invoice Price 0.0%

180 50.0%

How the Purchase Option is Offered


Market Price (Resale value) 50.9%

57

Single rate per kilometer (if different from reimbursement table of widely recognized organization) 27.8%

Graduated distance (kilometer) allowance 11.4%

Flat allowance 0.6%

How Organization Reimburses Employees for Business Use of Their Personal Owned or Leased Cars


According to the reimbursement table of a widely recognized organization

(e.g., automobile clubs, government tables) 58.2%

158

This section refers to employees who are NOT eligible for a company car or a cash allowance in lieu of a company car, but occasionally use their personal

car for business purposes.

Organization Allows Employees to Use Their Personal Cars for Company Business


200 79.0%

Flat allowance plus rate per kilometer 0.6%

Fuel and oil only 1.3%



Number of Responses

Number of Responses

Reducing costs 20.0%

Introduction of flexibility 75.0%

Reduction of administration 5.0%

55 36.4%

Main Objective/Issue for Changes


Alignment with market best practices/competitiveness 80.0%

20

Policy Review

Company Reviewed Its Company Car Benefits Policy During the Last 12-Month Period



Acquisition/financing method 5.3%

19

Makes and models allocated 26.3%

Introduce more environmentally friendly policies/behaviors 65.0%

Other 50.0%

Changes Made

Harmonization across countries or subsidiary companies 80.0%

Maximize tax effectiveness to employee/employer 0.0%

Adapt policy in light of increasing taxes 0.0%

Extend replacement periods for rented/leased cars 0.0%

Reduce replacement periods for rented/leased cars 0.0%

Introduction of more environmentally friendly cars 68.4%

Phase out from a cash allowance policy to a company car policy 0.0%

Introduction of trade up/trade down option 10.5%

Introduction of a flexible benefits scheme 52.6%

Restriction of the company car benefit provision 5.3%

Introduction of possibility to choose between a company car or a cash allowance 10.5%

Phase out from a company car policy to a cash allowance policy 0.0%

Other 15.8%



Number of Responses

Business Unit

Head and Country

Manager Executive

Middle Manager

and Senior

Professional

Supervisory and



Maintenance 64.8% 64.7% 66.0% 69.6% 72.5% 69.8%

Insurance 59.3% 59.0% 59.5% 62.5% 64.1% 61.9%

Finance Costs (Interest) 42.2% 41.7% 41.3% 40.2% 43.0% 42.1%

Depreciation 38.9% 39.9% 41.7% 39.3% 47.2% 46.0%

Fuel Costs 28.1% 29.9% 28.3% 25.9% 33.1% 29.4%

Taxes 36.3% 36.0% 33.6% 39.3% 34.5% 35.7%

Other Elements Considered 35.6% 36.0% 34.4% 33.0% 28.9% 33.3%

Company Pays for Traffic Fines


95

An amount equivalent to the car entitlement, including costs to the organization of providing car,

maintenance, finance cost (interest), depreciation, etc. 29.5%

An amount to enable the employee to fund his/her own car equivalent to car entitlement

(purchase value of company car/list price) 10.5%


81 3.7%

Cash Allowances (in lieu of a company car)

Amount of Car Allowance Based on

Elements Used to Calculate an Annual Car Allowance Provided Instead of a Company-Owned or Leased Car


Taxable value of company car 1.1%

Market data for size of cash allowances 55.8%

Other formula 9.5%



Number of


Business Unit Head and Country Manager 290 6,718 8,400 10,000 12,000 13,446 10,130

Executive 311 6,000 7,500 8,730 10,200 12,000 8,956

Middle Manager and Senior Professional 276 5,000 6,000 6,700 7,713 8,500 6,747

Supervisory and Professional 113 4,260 5,000 6,000 7,000 8,000 5,951

Sales Manager 148 4,626 5,500 6,221 7,200 8,400 6,496

Sales Professional 128 4,076 4,738 5,500 6,525 7,518 5,685

Number of


Business Unit Head and Country Manager 41 5% 6% 8% 10% 12% 8%

Executive 44 6% 7% 9% 10% 12% 9%

Middle Manager and Senior Professional 37 7% 9% 10% 11% 12% 10%

Supervisory and Professional 14 9% 10% 10% 11% 12% 10%

Sales Manager 23 7% 9% 10% 12% 13% 10%

Sales Professional 21 10% 10% 12% 13% 15% 11%

Typical Annual Car Allowance Amount (in Local Currency)



The total allowance(s) amount(s) of all car expenses covered such as but not limited to car, fuel for private use, maintenance, insurance, tolls, etc. Please exclude expenses for business fuel. Please

note that the trip to and from office/plant (work location) would be considered private use.

Typical Annual Car Allowance Amount as a Percent of Annual Base Salary



The total allowance(s) amount(s) of all car expenses covered such as but not limited to car, fuel for private use, maintenance, insurance, tolls, etc. Please exclude expenses for business fuel. Please

note that the trip to and from office/plant (work location) would be considered private use.



Business Unit

Head and Country

Manager Executive

Middle Manager

and Senior

Professional

Supervisory and



Company imposes a diesel car only policy 18.8% 19.7% 19.7% 20.5% 16.9% 21.1%

Company imposes a petrol car only policy 79.7% 78.9% 78.9% 78.1% 81.5% 77.5%

1.4% 1.4% 1.3% 1.4% 1.5% 1.4%

Fuel choice is not restricted 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Business Unit

Head and Country

Manager Executive

Middle Manager

and Senior

Professional

Supervisory and



Reimbursement to the employee 61.8% 61.4% 60.0% 59.7% 49.2% 52.4%

Vouchers 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Fuel Card 38.2% 38.6% 40.0% 40.3% 50.8% 47.6%

Percent of

Responses

Number of Responses 18

1. Allstar 55.6%

2. Arval 11.1%

3. BP 11.1%

Fuel

Restrictions in Place on the Type of Fuel an Employee can Choose


How Cost of Fuel is Paid


Top Three Responses to Fuel Card Providers Specified - Most Frequent Reported

Company imposes an ethanol only car policy



Number of Responses

Number of Responses

Cash allowances for employees entitled to a car due to their status within the company, were introduced 9.7%

Cash allowances for employees entitled to a car due to their job needs/requirement were introduced 3.2%

Buying out' of company cars - All company cars were replaced with cash allowances 1.1%

Green Initiatives

Environmentally Friendly Changes Made to Car Policies


93

No change 57.0%

Encourage employees to work from home 15.1%

Encourage employees to travel less and make use of tele/web conferencing 31.2%

Other 7.5%

Introduced trading down to promote more fuel efficient cars 16.1%

Installation of standard soot filters on diesel cars 3.2%

Adapt fuel policy in order to reduce consumption 7.5%


51 13.7%

Steps Organization has Taken to Deal with New/Enhanced Taxes Affecting its Employees


Eligible Employees can Select LPG/Bio Fuel/Hybrid or Electric Cars


71 71.8%

Organization Offers Incentives for Choosing LPG/Bio Fuel/Hybrid or Electric Cars

Provided short-term cash compensation 0.0%

Undertaken a case-by-case review 5.8%

Not applicable 19.2%

104

No change 72.1%

Identified employees "at risk", and notified them of the changes 1.9%

Allowed accelerated replacement of existing company car 1.0%



Number of Responses

Number of


Business Unit Head and Country Manager 31 120 130 135 152 160 140

Executive 35 120 128 130 148 160 138

Middle Manager and Senior Professional 36 120 125 130 140 160 136

Supervisory and Professional 35 116 120 130 140 160 134

Sales Manager 31 120 130 135 144 160 138

Sales Professional 31 120 127 130 140 160 136

Cars over a certain CO² emission level are still offered, but the employee has to contribute to the

imputed tax 1.9%

Not applicable 13.5%

Company has a Ceiling on CO2 Emissions


Policy Changes due to Emission Related Tax Regulations


104

No change 41.3%

Cars over a certain CO² emission level are no longer offered 43.3%

Percent Responding Yes

109 24.8%

109 37.6%

CO2 Emission Ceiling Per Category (g per Kilometer/Mile)



Company Modified its Policy in Order to Avoid Offering Fuel for Private Use

Number of Responses



Fax: +1 416 960 7093

United States

Email: [email protected]

Phone: +1 800 645 5771 (toll free)

Phone: +1 914 289 3282 (outside the U.S.)

Fax: +1 914 289 3201

NORTH AMERICA

Canada


Phone: +1 877 550 4402 (toll free)

Phone: +1 416 960 2700 (outside Canada)

Phone: +1 866 824 5815 (toll free in the U.S.)

Fax: +1 954 430 0345

LATIN AMERICA


Phone: +1 954 767 1345


Phone: +32 2 678 15 11 or +44 20 7170 2999

Fax: +32 2 675 36 01 or +44 20 7170 2222

ASIA PACIFIC

Email: [email protected]: +65 6880 5688 or +63 2 982 3913Fax: +65 6880 5699 or +63 2 902 0700

EUROPE, MIDDLE EAST AND AFRICA

If you have any questions, contact your local account manager or the regional office nearest you. Details on local office phone numbers can be

found under Help on our online data analysis tool.

Contacts

Contact


willis towers watson data services€¦ · willis towers watson data services 2017 company car...

Documents